New Mexico’s Small Business Recovery Loan Fund offers up to $150,000 with low interest to pandemic-impacted businesses. The fund was created to assist New Mexico businesses unable to access any or enough Paycheck Protection Program (PPP) funds, and it continues to fill that void now that the PPP has expired. The loan program is open to applicants until December 31, 2022.
Created by the Legislature in 2020 and expanded in 2021, the SBRLF has changed again in 2022. House Bill 148, passed by both chambers of the New Mexico Legislature in the 2022 Regular Session and signed by Gov. Michelle Lujan Grisham, extends the loan application deadline from May 31, 2022, to December 31, 2022.
Most New Mexico businesses that were impacted by the pandemic are eligible for the loan because qualification criteria became less stringent when changes were made last year. Impact criteria, now defined as “substantial disruption” or “substantial decline in gross revenue,” uses data comparing 2020 to 2019 rather than comparing just a few months during those years.
Loans carry low interest — currently 1.625% fixed for the ten-year term of the loan, which may be repaid at any time with no penalties or charges. No interest is due in the first year, and interest-only payments are due in the second and third years.
Businesses that received a Small Business Recovery Loan in 2020 can refinance their loan for a larger amount and a longer term.
The SBRLF is administered by the New Mexico Finance Authority.